Canadian Stocks Give Up Early Gains, Pulled Under By Financial and Energy Shares


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Canadian stocks have lost early gains that saw the index reach around 12,240 mid-morning. The Toronto Stock Exchange is now down around 30 points at the 12,180 level and trading in a narrow range, following European and other North American equity indices lower as talks between the White House and U.S. congressional leaders drag in efforts to resolve so-called fiscal cliff crisis.

Shares of energy and financial issues are declining today although Canada's biggest bank Royal Bank (RY.TO) beat earnings forecasts yesterday and the price of oil is higher.

In economic news, Real gross domestic product ( GDP ) rose 0.1% in the third quarter, slowing from the 0.4% growth in the second quarter, according to Statistics Canada. The slower pace of growth resulted from export declines - falling 2.0%, the largest slide in over three years - as well as a fall in business investment.

Here's where the Canadian market stands today:

- S&P/TSX Composite index down 31.86 (-0.26%) to 12,170.99.

In company news, shares of Nexen (NXY, NXY.TO) are up nearly 3% today after a cabinet minister thought to oppose CNOOC's plans to acquire the oil and gas company said a recent foreign investment agreement should work to ensure Canadian values - including human rights - are respected by Chinese companies.

The government has set a Dec. 10 deadline for deciding whether to approve the deal. Ottawa also is expected to unveil updated guidelines for foreign investment at the same time.

"As far as I'm concerned, the (Foreign Investment Protection and Promotion Agreement) gives us a great deal of reciprocity," Immigration Minister Jason Kenney said today. "Now Canadians will have some enforceable legal remedies to protect their investments in China."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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